DELHY - Delivery Hero SE (DLVHF) Q1 2024 Earnings Call Transcript
2024-04-26 08:49:07 ET
Delivery Hero SE (DLVHF)
Q1 2024 Earnings Conference Call
April 25, 2024, 08:00 ET
Company Participants
Christoph Bast - IR
Niklas Ostberg - CEO
Emmanuel Thomassin - CFO
Conference Call Participants
Joe Barnet-Lamb - UBS
Andrew Ross - Barclays Bank
Marcus Diebel - JPMorgan
Lisa Yang - Goldman Sachs Group
Christopher Johnen - HSBC
Giles Thorne - Jefferies
Joseph McNamara - Citigroup
Silvia Cuneo - Deutsche Bank
Annick Maas - Societe Generale
Andrew Gwynn - BNP Paribas
Presentation
Operator
Ladies and gentlemen, welcome to the Delivery Hero Q1 2024 trading update conference call and live webcast. I'm the TV operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. [Operator Instructions]. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Christoph Bast, Head of IR. Please go ahead, sir.
Christoph Bast
Hello, and welcome, everyone. Thank you very much for joining our Q1 2024 earnings call. We would like to remind you that this call is being webcast and a replay will be available later today on our website. With me today, we have Niklas Ostberg, CEO; and Emmanuel Thomassin, CFO of Delivery Hero, who will take us through the most relevant aspects of our Q1 performance. After that, we look forward to answering your questions. And now let me hand it over to you, Niklas.
Niklas Ostberg
Thank you, Christoph, and hi, everyone, and thanks for listening in. We have a lot to cover. So let's jump straight into our Q1 highlights. Our business continued to show substantial growth with GMV increased 8% year-on-year in Q1 on constant currency and excluding effects of hyperinflation accounting. Growth, including hyperinflation accounting was marginally higher. Positive momentum was driven by healthy order growth, which has been in the double digits across our markets outside of Asia, where GMV has grown in aggregate by 20% year on year this quarter.
Total segment revenues continue to significantly outgrow GMV with a 21% year-on-year increase in the quarter, driven by multiple levers, including ad tech revenues, service and subscription fees, higher commission for delivery as well as increase in the March contribution. This is also why we now increased the revenue guidance range from 15% to 17% year-on-year to 18% to 21% year-on-year on constant currency and excluding hyperinflation.
We are further executing our profitable growth strategy, which means not only delivering strong revenue growth but also substantially enhancing profitability. In Q1, we reached a gross profit margin of 7.7%. That's a 60% -- or 60 basis points higher than last year. We expect to continue expanding margins further in the quarters ahead.
I'm also very pleased to report that Glovo has been growing exponentially since acquisition, while simultaneously improving profitability. We anticipate that Glovo will achieve a positive adjusted EBITDA in the second half of this year, including group costs. Additionally, Dmart is progressing well as we continue to execute our optimization initiatives.
We now anticipate a positive adjusted EBITDA for Dmart by the end of 2024. And we also executed a refinancing transaction during Q1, benefiting from highly supportive debt capital markets and very healthy investor interest from our debt investors. The transactions further enhance the maturity profile of our debt obligation while improving the associated interest rates.
Our next upcoming debt outflow amounts to less than EUR100 million in July 2025. As mentioned before, we are in the comfortable position to repay all of our debt maturities organically over the coming years through our own cash flow, if so desired....
Delivery Hero SE (DLVHF) Q1 2024 Earnings Call Transcript